U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 04-13-2015, 10:00 AM
 
Location: Sugarland
13,228 posts, read 11,754,597 times
Reputation: 15248

Advertisements

None of the lenders I've spoken to bothered to tell me about lender paid MI. Yet when I specifically asked them about it, they told me that they do offer it. If they had volunteered the information years ago, I might've already purchased a house by now. All this time, I'd been thinking that anything less than 20% down would require borrower paid MI until I recently read something online about lender paid MI in exchange for a higher interest rate. Why so secretive?
Reply With Quote Quick reply to this message

 
Old 04-13-2015, 11:25 AM
 
Location: Phoenix, AZ > Raleigh, NC
14,297 posts, read 17,491,099 times
Reputation: 22118
Quote:
Originally Posted by Sweet Like Sugar View Post
None of the lenders I've spoken to bothered to tell me about lender paid MI. Yet when I specifically asked them about it, they told me that they do offer it. If they had volunteered the information years ago, I might've already purchased a house by now. All this time, I'd been thinking that anything less than 20% down would require borrower paid MI until I recently read something online about lender paid MI in exchange for a higher interest rate. Why so secretive?
Yet another example of what people have told you in other posts: You are NOT talking to the right people or hiring the right people, or educating yourself with the correct resources while you are conducting your home search.
Reply With Quote Quick reply to this message
 
Old 04-13-2015, 11:28 AM
 
Location: Sugarland
13,228 posts, read 11,754,597 times
Reputation: 15248
Quote:
Originally Posted by Jkgourmet View Post
Yet another example of what people have told you in other posts: You are NOT talking to the right people or hiring the right people, or educating yourself with the correct resources while you are conducting your home search.
"People" haven't told me that- just you.
Reply With Quote Quick reply to this message
 
Old 04-13-2015, 09:06 PM
 
Location: Southern California
4,350 posts, read 4,929,984 times
Reputation: 2129
Quote:
Originally Posted by Sweet Like Sugar View Post
None of the lenders I've spoken to bothered to tell me about lender paid MI. Yet when I specifically asked them about it, they told me that they do offer it. If they had volunteered the information years ago, I might've already purchased a house by now. All this time, I'd been thinking that anything less than 20% down would require borrower paid MI until I recently read something online about lender paid MI in exchange for a higher interest rate. Why so secretive?
It is no secret, but almost everyone cares about is rate and not the monthly cost. The discussing of LPMI might take 1/2 and hour versus 10 seconds to quote a rate.

If you had known about LPMI how much of a difference over PMI would it have made? You could have just bought a cheaper places.
Reply With Quote Quick reply to this message
 
Old 04-13-2015, 09:12 PM
 
2,409 posts, read 2,488,355 times
Reputation: 1807
Quote:
Originally Posted by Sweet Like Sugar View Post
None of the lenders I've spoken to bothered to tell me about lender paid MI. Yet when I specifically asked them about it, they told me that they do offer it. If they had volunteered the information years ago, I might've already purchased a house by now. All this time, I'd been thinking that anything less than 20% down would require borrower paid MI until I recently read something online about lender paid MI in exchange for a higher interest rate. Why so secretive?
How would that have affected your decision? You'd still make a higher monthly payment, except that the higher rate doesn't drop off like PMI would.
Reply With Quote Quick reply to this message
 
Old 04-13-2015, 09:36 PM
 
Location: MID ATLANTIC
7,598 posts, read 17,614,249 times
Reputation: 8078
Free home buyer classes are offered in almost every city and state and covers these option. But what I find curious, for decades, state bond programs have offered no money down programs with no PMI (it's a higher rate and basically the same as lender paid). Dodd-Frank has pushed most of these to 3% down, but they're there. But what about FHA? It's only recently the MIP has been cost prohibitive - you could get a darn good loan with only 3.5% down, and a lender credit to cover all closing costs.

The hardest thing in the world is to prove a negative, meaning there's no way we can begin to tell you why you didn't know. What's important is, now you do. But because I like to play devil's advocate, LPMI, is not always the best course of action. Why? Because the PMI will never be dropped from that loan, even when paid down below 80% and much lower.

Every loan and every buyer is different. Keep asking questions
Reply With Quote Quick reply to this message
 
Old 04-13-2015, 11:09 PM
 
Location: Sugarland
13,228 posts, read 11,754,597 times
Reputation: 15248
Quote:
Originally Posted by AmFest View Post
How would that have affected your decision? You'd still make a higher monthly payment, except that the higher rate doesn't drop off like PMI would.
With the LPMI, my monthly mortgage payment would be less than what it would be with PMI. I understand that PMI doesn't last forever, but I'm concerned with right now. Someone above mentioned that I could have found a cheaper house, but I'm having problems finding what I'm looking for and having a bit more flexibility to increase the sales price would help.
Reply With Quote Quick reply to this message
 
Old 04-14-2015, 05:49 AM
 
Location: Southern California
4,350 posts, read 4,929,984 times
Reputation: 2129
Do you know about a one time MI payment option?
Reply With Quote Quick reply to this message
 
Old 04-14-2015, 05:52 AM
 
Location: Sugarland
13,228 posts, read 11,754,597 times
Reputation: 15248
Quote:
Originally Posted by thelopez2 View Post
Do you know about a one time MI payment option?
Like a lump sum payment up front? I'd rather not do that if it's going to be thousands of dollars.
Reply With Quote Quick reply to this message
 
Old 04-14-2015, 05:57 AM
 
Location: Houston Metro
1,064 posts, read 1,191,727 times
Reputation: 1514
We're talking about the difference of probably less than $120/month with PMI vs no PMI. If $120 a month is a deal breaker for buying a house, I hate to say it but you can't afford it. Your property tax payments can swing more than that in year over year, especially here in Harris County/Fort Bend County with the market the way it is.

Quote:
Originally Posted by Sweet Like Sugar View Post
With the LPMI, my monthly mortgage payment would be less than what it would be with PMI. I understand that PMI doesn't last forever, but I'm concerned with right now. Someone above mentioned that I could have found a cheaper house, but I'm having problems finding what I'm looking for and having a bit more flexibility to increase the sales price would help.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top